Trip-hailing agency Lyft Inc stated it would lay off about 1,072 staff, or 26% of its workforce, in one of many first steps by the brand new Chief Government David Risher, sending its shares up by about 1% on Thursday.
Risher, who took over earlier this month, had just lately stated the corporate will “considerably” reduce jobs, with out offering the variety of jobs that might be affected.
Lyft may also get rid of greater than 250 open positions and incur about US$41 million to $47 million in prices associated to severance and worker advantages within the second quarter, it stated in an alternate submitting.
It’s going to additionally take extra prices associated to stock-based compensations, which it stated can’t be estimated on the time.
The cash saved from job cuts shall be used to help “service-level enhancements” for riders and drivers, Lyft stated, promising to supply extra particulars in its first-quarter earnings name on Might 4.
That is the second spherical of job cuts by Lyft, which faces competitors from greater rival Uber Applied sciences Inc in a slowing economic system. It had laid off about 683 staff, or 13% of its then workforce, in November.
Coming off pandemic lows, Uber and Lyft are locked in a battle for market share, and buyers fear that Lyft’s value cuts to keep away from being a distant second within the North American ride-sharing market would squeeze its revenue.
Lyft’s inventory has thus far this yr misplaced 8.6% of its worth in contrast with Uber’s achieve of 20%, as of Wednesday’s shut.
Reporting by Yuvraj Malik in Bengaluru; Enhancing by Shailesh Kuber and Arun Koyyur